Crypto sentiment index sinks to lowest score since February

Crypto sentiment has dropped to its astir fearful level successful implicit 8 months, arsenic ongoing macroeconomic uncertainty continues to rattle marketplace participants.

However, crypto analysts are anticipating the bearish temper to beryllium short-lived.

The Crypto Fear & Greed Index, which measures wide marketplace sentiment, posted an “Extreme Fear” people of 10 successful its Saturday update, the lowest people it has seen since Feb. 27, arsenic Bitcoin (BTC) fell beneath $95,000 connected Friday and has yet to reclaim supra $96,000 astatine the clip of publication, according to CoinMarketCap. 

The February debased came conscionable days aft spot Bitcoin ETFs saw their worst-ever single-day outflows of $1.14 billion, arsenic Bitcoin fell from $102,000 astatine the commencement of the period to $84,000.

Indicators suggests marketplace is little bearish than erstwhile downturns

Crypto marketplace participants usage sentiment indexes to gauge the broader market’s sentiment toward the assemblage and pass their decisions connected whether conditions favour buying oregon selling.

The Crypto Fear & Greed Index hasn’t reached a people this debased since Feb. 27. Source: Alternative.me

However, Bitwise’s European caput of research, Andre Dragosh, argued the concern isn’t arsenic bleak arsenic it whitethorn look erstwhile compared with past downturns.

“Sentiment scale is bearish but little truthful than during erstwhile corrections contempt little prices,” Dragosh said successful an X station connected Friday, pointing to Bitwise’s crypto sentiment scale showing signs of reversal. 

“Our Cryptoasset Sentiment Index besides continues to amusement a affirmative divergence,” Dragosh said. 

While US President Donald Trump precocious signed a measure ending the longest authorities shutdown successful US history, an lawsuit immoderate crypto marketplace participants had blamed for caller volatility, uncertainty persists astir the US Federal Reserve’s interest-rate chopped decision, which is often linked to the crypto market.

Bitcoin illustration signaling “potentially positive” determination ahead

Meanwhile, NorthmanTrader laminitis Sven Henrich told his 503,400 X followers connected Friday that Bitcoin’s terms illustration is showing “something perchance positive” for Bitcoin bulls. “Falling wedge, affirmative divergence,” Henrich said.

A Messari probe manager, known online arsenic “DRXL,” said that successful his 8 years moving successful the crypto industry, helium has ne'er seen “such dissonance betwixt the headlines and the sentiment.”

Related: ‘We are buying’: Michael Saylor denies reports of Strategy dumping BTC

“Everything we erstwhile dreamed of is happening, yet it someway feels… over,” helium said.

Some analysts spot the lack of a year-end surge arsenic a steadfast sign. Bitwise main concern serviceman Matt Hougan precocious told Cointelegraph that “The biggest hazard was [if] we ripped into the extremity of 2025 and past we got a pullback.”

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